How can we avoid becoming part of the debt trap?
- Recognize the Trap. Traps work because they’re disguised – they’re not easily seen or recognized. A trap is a lie. Ask yourself these questions: What’s the lie of debt? How is it disguised? Here’s how it is commonly misrepresented – “You need to build your credit to improve your FICO score., You deserve it!, It’s a part of the American Dream., Everybody’s got debt.” Who would want you to believe a lie about debt? Credit card companies, banks, credit institutions make TONS of money when you live in debt!
- Escape the Trap. GO, to the point of exhaustion! Don’t sleep until you’re free!
Three steps to getting out of debt:
(1) Stop borrowing money!
- You can’t get out of a hole if you keep digging it.
(2) Get gazelle intensity.
- You don’t ease your way out – you break out.
- Cut spending.
- Go bare-bones.
- Sell stuff. You’re in debt because you bought stuff you couldn’t afford – sell some of it!
- Get a part-time job. Not a long-term workaholic, but this is a sprint – get crazy.
(3) Attack debts one-by-one.
- Use the “Debt snowball” technique.
If you made your decisions based on MATH, you wouldn’t be in debt. Debt/money is EMOTIONAL – use that to your advantage. There’s ONE MORE THING TO DO…Destroy the Trap. HOW? By SAVING!
Two simple saving steps:
(1) Save $1000 for emergencies immediately.
- Do this before you do the debt snowball effect.
(2) Once you’ve eliminated all debts except your mortgage, save at least three months worth of expenses.
Then, even when life happens, debt has no hold on you. You’ll no longer feel caught in the debt trap because you’ll have destroyed it!